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Nowadays, it is the main target of all countries to generate information and make a technological product by commercializing the information. However, the countries are limited to developed countries. They can invest more in R&amp;D and transmit new technologies created by their strong economic structure and sufficient human capital, to production process. Conversely, other countries can achieve their technological development as adaptation of imported technology to local conditions. Moreover, regional development has gained a new meaning to obtain regional competitiveness; no longer has regional development referred more than a plane being only an implementation of central policies aimed to reduce disparities among regions. As a result of all changes, firms have tried to integrate with the world as well as build their presence in the regional basis. However, the firms don’t have any qualification and resources to follow technological innovation continuously in the increasing global competition. For this reason, it is to emerge a requirement to build a partnership among the firms sharing same geographical space and industry. In this regard, by creating clusters at both national and regional level, policymakers aim to make their firms more competitive in the global race. In this study, it is discussed competitive, its effects on regional policy, and cluster policy as a regional policy tool. The main purpose of the study is to determine the effects of cluster in the context of competition and to provide a preliminary study on what might be done for successful policy application.

The Relations between Competition and Cluster in the Theoretical Perspective: The Effects on Regional Development